Nanta says his ministry has taken serious note on the implications of rising construction costs

KUCHING, March  30 2026: Works Ministry has taken serious note of the implications of rising construction costs following geopolitical developments in the Middle East, including the closure of the Strait of Hormuz, which has a direct impact on the stability of the global energy supply chain.

The minister Alexander Nanta Linggi (picture) said the increase in costs needs to be addressed within a comprehensive framework as the construction sector has significant dependence on fuel prices such as petrol and diesel, in addition to logistics and construction material costs that are closely linked to international markets.

“Given that the main cause is global geopolitical factors beyond domestic control, the impact of this cost pressure is also being experienced by most countries. In this regard, the approach taken must be strategic, targeted and data-based,” he said a a statement.

Manta was commenting on reports that over 41,000 or 30 per cent of the 138,000 contractors are at risk of winding up due the rising cost of diesel.

At the same time, many on-going construction projects are greatly affected and their completion be delayed due to the rising cost of diesel.

Nanta said his ministry is conducting a comprehensive assessment with relevant agencies and the industry to identify appropriate mitigation mechanisms, including in terms of project implementation, cost structure and the resilience of the construction sector supply chain.

“At the same time, the Construction Industry Development Board of Malaysia (CIDB) will strengthen its role as an industry coordinator by mobilizing strategic collaboration with relevant agencies and industry players to formulate pragmatic and high-impact policy proposals and intervention measures.

“The government is committed to ensuring the continuity of the implementation of national development projects as well as maintaining the stability of the construction sector through a policy approach that is responsive, adaptive and oriented towards long-term sustainability,” he added.